Godfrey Phillips India Ltd on Tuesday said its promoter KK Modi-owned Modi Enterprises has no plan to sell its stake in the cigarette maker. The company also clarified that it is “neither engaged nor privy to any such discussions on rumored potential transaction by its promoters”.
The clarification comes after Lalit Modi, son of late industrialist KK Modi, said on the micro-blogging website Twitter that all assets of the group were up for sale.
“Just to set the record straight… Yes, all assets of the KK Modi group are going on sale. I mean all. The other three trustees wanted to continue running the business but I felt post my father passing away – the value will deplete. I voted for sale,” Modi tweeted late on Monday.
Godfrey Phillips, manufacturer of Marlboro cigarettes, also said it received a clarification from its “significant promoter” that there has been no decision to put the company’s assets on sale.
However, Modi reiterated on Twitter that he decided to sell all the family-owned assets in their entirety. “Unfortunately, I have decided, post the passing away of my father, that all assets owned by our family should be sold in its entirety.”
Lalit Modi and his family own 47.09% stake in Godfrey Phillips, while Philip Morris Global Brands, the owner of the Marlboro brand, own 25.1%.
Modi added that all Modi Enterprises group companies, land, investments in any other company and assets listed on the group’s website, modi.com are on the block, except beauty product brand Colorbar, Ego restaurant chain, Beacon Travels and its education businesses, which will be retained by the group.
The retained businesses will be owned and run by family members, Modi said on Twitter.
“The investment banker will have the mandate to sell to the highest bidder. The bankers will be assisted by the group CEO (chief executive officer) RK Malhotra, who will apprise the trustees headed by Bina Modi (KK Modi’s wife), with Charu /Samir Modi (KK Modi’s children) and me, process for sale laid strictly in the trust guidelines and no deviation allowed,” Modi tweeted.
At 12:50 pm, shares of Godfrey Phillips traded 2.63% lower at ₹1,400.95 on the BSE today. However, Sensex was up a marginal 0.05% at 41,174.41 points.
